I love the Mortgage Offset Calculator! Exactly what I have been looking for. Very helpful.
Just checking on the assumptions though. They say “It assumes that once you have enough money in the offset account you will use it to pay off the loan.”
It does not seem it works like that. The offset balance never goes below the balance at start, never goes down at all, only up if there are top-ups.
So it seems that the repayments are either:
-from an external account or
-are added to the offset account when due, separately from other top-ups, but then they are not reflected in the daily balances?
Thank you! I have changed the assumptions so that the regular repayments are from the offset account. When the balance in your offset account is not enough for the regular repayment it will be from an external account. You are correct as this is what people normally do.